Conforming Loan Limit Will Jump 12% in 2023
For the second year in a row the conforming loan limit will increase by more than 10%, according to the latest press release from the Federal Housing Finance Agency.
- In most of the United States, the 2023 conforming loan limit value for one-unit properties will be $726,200, a 10.8% increase ($79,000) from the 2022 CLL of $647,200.
- The confirming limit is now 42.3% higher than at the start of the pandemic in 2020 when the CLL was $510,400.
One Million Dollars. In high-cost areas, the new ceiling loan limit for one-unit properties will be $1,089,300, which is 150% of $726,200. Wow.
- Click here to see the map of high-cost areas.
Reminder. The conforming loan limit applies to loans bought by Fannie Mae & Freddie Mac who are now owned by the U.S. government. These loans are called conforming loans, and they generally come with lower closing costs and can require a smaller down payment which makes homeownership easier to obtain.
BOTTOM LINE: With the median existing-home price in the West at $588,400 if you don’t raise the CLL most homes in the West, especially California, will not meet the requirements of Fannie & Freddie.
